EC302-Advanced Macroeconomics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Terms in which taught: Spring term module
Pre-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and EC206 Intermediate Mathematics for Economics or EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and MA2DE Differential Equations and MA2RA1 Real Analysis I
Non-modular pre-requisites:
Modules excluded:
Module version for: 2017/8

Module Convenor: Dr Alexander Mihailov


Summary module description:
This module covers major theories of long-run economic growth and short-run economic fluctuations. It looks at issues such as what causes economies to grow, why some countries are richer than others, and what poorer nations can do to catch up. It then looks at alternative explanations for what causes economies to fluctuate in the short run and what role the government can, or should play, in smoothing out fluctuations.

To learn to utilise an analytical framework within which to ask and answer fundamental questions about economic growth, business cycles and macroeconomic policy.
To learn about, and understand the relative merits of different schools of thought in modern macroeconomics.

Assessable learning outcomes:
To apply and extend the principles developed in Part 2 Intermediate Macroeconomics and Intermediate Microeconomics to the analysis of important macroeconomic problems. At the end of the module students should be able to:
Understand and explain the major sources of long run economic growth and short run business cycles.
Define the scope for, and limitations of, monetary and fiscal policy to achieve particular macroeconomic objectives.

Additional outcomes:
Students should have a broad understanding of the evolution of modern macroeconomics, especially pertaining to economic growth and business cycles.

Outline content:
Theories of long run economic growth: starting with the Solow model, and then developing endogenous growth models which look at the role of human capital and technological progress.
Theories of short run economic fluctuations: starting with the Keynesian framework and developing the Real Business Cycle Theory model and New Keynesian macroeconomics.

Brief description of teaching and learning methods:
Teaching is done primarily through lectures.

Contact hours:
  Autumn Spring Summer
Lectures 30 2
Guided independent study 150 18
Total hours by term 180.00 20.00
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 70
Project output other than dissertation 15
Set exercise 15

Other information on summative assessment:
Coursework has a weight of 30% in the final assessment mark. It will consist of one problem set (worth 15% of the final mark) and one empirical project (15%). The empirical project will be due for submission at mid-term.

Formative assessment methods:

Penalties for late submission:
The Module Convenor will apply the following penalties for work submitted late, in accordance with the University policy.

  • where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • The University policy statement on penalties for late submission can be found at:
    You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    Length of examination:
    One 3-hour unseen written paper.
    Part 3 examinations are held in the Summer term.

    Requirements for a pass:
    A minimum overall mark of 40%.

    Reassessment arrangements:
    Re-examination for all modules takes place in August/September of the same year.
    Re-assessment is by examination only; coursework is not included at the second attempt.

    Additional Costs (specified where applicable):
    1) Required text books: Two compulsory/main textbooks:
    “Introduction to Economic Growth”, by Charles I. Jones and Dietrich Vollrath, published by W.W. Norton &Co., 2013 (3rd ed. ISBN: 9780393919172 paperback)
    (paperback price at Blackwell lists: £64.78)
    “Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications”, by Jordi Gali, published by Princeton University Press, 2015 (2nd ed. ISBN: 9780691164786 hardback - price at Blackwell lists: £48.95)

    2) Specialist equipment or materials:
    3) Specialist clothing, footwear or headgear:
    4) Printing and binding: There may be optional costs associated with photocopying or printing sources listed on the reading list relating to this module. Please note that the Library charges approximately 5p per photocopy.
    5) Computers and devices with a particular specification:
    6) Travel, accommodation and subsistence:

    Last updated: 31 March 2017

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